11.5% growth in Pakistan's banking sector in H1 2024, driven by gov't securities and deposits, with non-performing loans and capital adequacy ratio of 20%.
The State Bank of Pakistan reported an 11.5% growth in the banking sector for the first half of 2024, driven by government securities and an 11.7% rise in deposits. While non-performing loans increased, banks maintained a strong solvency position with a capital adequacy ratio of 20%. Profitability faced challenges from declining returns on advances, but non-interest income helped. Key risks include an energy crisis and volatile commodity prices, although confidence in financial stability remains.
September 18, 2024
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